So, we are now into the month of August and the jobs (or lack thereof) report for July has just been released. While people lucky enough to get jobs in July totaled 163,000, the national unemployment rate jumped form 8.2% to 8.3%. That's 42 straight months with the rate being above 8%. The 163K added is up slightly from the 151K average for the year. This increase for July will be touted by the Obama Administration and the democratic leadership as a sign the economy is improving.
House minority leader Nancy Pelosi (D), Ca., has already weighed in saying,"Last month, 163,000 jobs were created despite Republicans' refusal to work with President Obama and Democrats to create jobs, grow our economy, and ensure the economic security of our middle class," she said. "With too many Americans still out of work, the message remains clear: we must do more."
More indeed! This growth will continue to be stagnant because businesses are leery of the President's misguided plan to raise taxes on the wealthy, (which he defines as people making more than $250,000 per year), the very people that create jobs. Ms. Pelosi and the President apparently have not received that memo.
To make a large dent in the unemployment rate job growth needs to increase to 250,000 per month. Mr. Obama has proven to be incapable of solving this problem. His solution is higher taxes and bigger government. Proven by history during the Reagan years not to be a sane solution.
The economy remains weak despite the recession being declared over in June, 2009. Growth slowed to an annual rate of 1.5 percent in the second quarter of April-June, down from 2 percent in the first quarter and 4.1 percent in the final three months of 2011.
There will be three more monthly jobs reports between now and the election. Economists are projecting more of the same, jobs growth of between 100,000 to 150,000 per month. Not a stellar performance from the gentleman who promised hope and change.
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